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Iran steel market Trend in Week 34th , 2020

Iran steel market Trend in Week 34th , 2020

Billet

Billet price in Iran domestic market started week 34th at USD 413 /mt, until the weekend it reached USD 414/mt ex-work including 9% VAT. In fact, market was stable. Also billet price at IME ( Iran Mercantile Exchange) remained almost unchanged while the export trend continued and the last export offer has been  USD 396/mt FOB Iranian ports.

 Market stability is due to two main factors including exchange rate stability and market recession and negative sentiment of it.

Some market participants believe that this recession is natural and others expect it to deepen because there is no demand, but in the current situation, it is not clear where the market is going.

Long Products

Average price of rebar, which was USD 474/mt on last Saturday, reached USD 470/mt ex-work including 9% VAT by end of the week. Prices have reached a low point, but market is cautious due to government policies. The main problem is that due to the rapid acceleration of prices in July, cheap inventories of traders have not been sold completely yet, and until then, there will be a waiting policy in the market, which will not allow the market to be active. Regardless of the price issue, lack of demand also is affecting long products market.

Flat Products

HRC 2 mm thickness was priced at USD 806/mt ex-work Esfahan on last Saturday, which reached USD 778 /mt by end of the week. Mobarakeh Steel co HRC thickness 3 to 15 mm on Saturday was on average USD 704/mt, which reached USD 696/mt ex-work including 9% VAT by end of the week. The main reason for the drop in prices was lack of demand and market waiting policy, while nothing special happened on the supply side.

Oxin co HRP thickness 10-40 mm, which was priced at USD 718/mt on last Saturday, reached USD 721/mt ex-work including 9% VAT by end of the week. The improvement in demand for thicknesses of 20 to 40 mm made average price upward. Kavian co HRP, which was  priced at USD 661/mt for thicknesses 12 to 25 mm on Saturday, dropped to USD 649 /mt by week end.  CRC market was almost stable. The average price on last Saturday, which was USD 1095/mt, reached USD 1096/mt by end of the week, but market was calm and demand level was not serious.

HDG price fell from an average of USD 1554 /mt on Saturday to USD 1032/mt ex-work including 9% VAT. Lower HRC price and stability of ex-rate made HDG price lower.

In the current situation, the steel market is at a standstill because demand is low and there is cheap inventory available in warehouses.

CBI weekly average ex-rate for Steel Products (SANA): Rials 197.820 / 1USD

24 Aug 2020

Aug 24, 2020 17:13
Number of visit : 191

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